Property management company increasing rent

[taitai]

I am not sure what all the outrage is here. The owners are well within their rights to raise the rent at the time the renter signs a new lease. The renter signed a one year lease which is up for renewal. The owners want to raise the rent. The renter can choose to either pay the new price or move. It is all very easy. My guess is that as the lease is up in August, they need to let the owners know now, 60 days in advance, whether they will be renewing or not.

We own a LOT of rental property and often raise the rent each year.

If you do not want to pay a higher price, you can always negotiate. For instance, we have a tenant who agreed to do all the lawn work and snow shoveling in return for a discount on the rent. For us, that was a great deal so we agreed.

Good luck

 

[ZachnElli]

I mean this in the utmost respect to all posters -

If you are paying almost $25,000 a year in rent, why not look into buying a house? Your rent payment is through the roof - your house payment would be less!

A $200,000 mortgage for 10 years at a 6% interest (we have terrible credit and was approved for 5.4%) payment is $2220 a month. After 10 years you OWN it (that's still leaving you an extra $200 a month for taxes and maintenence).

Just a thought....

Financing a house right now is extremely difficult. They aren't giving out loans as easily as they use to. As someone who had to write a check at the closing of selling my last house (meaning we lost our original down payment plus all our equity and still had to pay to cover closing costs), I have no down payment. You can't get loans with no down payment or even small down payments anymore. Coming up with a rental deposit and moving costs after dealing with unemployment was hard enough, but a 20% down payment is just impossible right now. Plus, who knows how the new job will pan out. This economy has been tough on some of us. And no, no ticker in my signature, I have no idea if we'll ever be able to go back to WDW.

 

[mrsklamc]

I am not sure what all the outrage is here.

I don't see any outrage; just surprise that the owners would try to raise rent to something the market clearly won't bear.

The most recent post by the OP clarifies that they are just being rather short-sighted because they aren't really real estate investors-just people who are mistaken about the situation that they are in. They think that raising the rent will help them cover costs, but since it's doubtful they'll get a tenant at that rate, it's just going to end up costing the rental income they already had.

I agree that since they are in such a tenuous position it's best to move, OP.

 

[disneyfans95]

cover closing costs), I have no down payment. You can't get loans with no down payment or even small down payments anymore. Coming up with a rental deposit and moving costs after dealing with unemployment was hard enough, but a 20% down payment is just impossible right now. Plus, who knows how the new job will pan out. This economy has been tough on some of us. And no, no ticker in my signature, I have no idea if we'll ever be able to go back to WDW.

This is what buying a house is supposed to BE! Sorry but my wife and I bought our first house last year. This was after years of saving up the 20% deposit. It was not impossible, but it just take times.

It bugs me that many people (not saying this poster is one) just act like owning a home is some right that you have. They don't want to save or act responsible with their money and expect banks to just hand over the cash.

So many people just assume they will gain equity in house purchases. I don't feel sorry for many of the flippers and/or the people that took out silly ARM loans, or did no money down type deals. You, as the buyer, have the accountablilty here.

Oh off my my soapbox.

For the OP, $300 bump is steep for an already high rent. Take a look around now and while moving stinks, that is over $3.5k going out the window a year.

 

[daisyyy]

It seems like an awful lot, for them to ask in a bad market. Why is it your responsibility to pay for all that extra because they are paying too high of a mortgage. The bottom line is, if you love the neighborhood / schools, you have to weigh that into the fact that it's a hassle to move. On the other hand, if you have that kind of cash for rent every month, I'm sure you can find something and BUY. it is a buyer's market. I'm not really clear on all of the downpayment rules anymore, but It just seems like soooo much money on something you don't own. I'm sure it's not like you haven't thought of that before, too, but really, you could probably get a good price on a home. Hey, if you refuse to pay the extra money, and they can't sell short sale, then maybe you can get a good deal on a foreclosure on your street. You know, if they try to do a short sale, no one says the house has to be perfectly tidy when you're showing it. Nothing turns off a potential home buyer than underwear laying on the floor, and dishes piled in the sink. (kidding... no flames please)...

 

[ZachnElli]

Disneyfans95, I know what you are saying, that is how we bought our first house too. But so many people on these renting threads come in and say your rent is so high, just buy a house! It's not that easy. My DH and I bought our first home in 1994 and we saved every one of my pay checks for 2 years, living on his income alone. It's just way harder to do now that we have 3 kids and I haven't worked in 10 months and he was out of work for 6 months also.

ETA: I just reread disneyfans95 post and you said it wasn't impossible to get the downpayment, just takes time. Yeah, it is impossible when you are both out of work. Stop assuming so much when you read a post.

 

[Ava]

This is what buying a house is supposed to BE! Sorry but my wife and I bought our first house last year. This was after years of saving up the 20% deposit. It was not impossible, but it just take times.

It bugs me that many people (not saying this poster is one) just act like owning a home is some right that you have. They don't want to save or act responsible with their money and expect banks to just hand over the cash.

I don't think the PP was saying people should not have to save their money for a down payment, or that banks should just hand over cash. My take on ZachnElli's post is that it's not as easy as, "Oh, if you're paying $2400 a month in rent you should just buy a house." Obviously one has to save up for a down payment before one can buy a home. For some people, like yourselves, it can take many years but eventually you saved the cash and were able to buy. For others, who struggle just to pay their rent/bills & keep food on the table, they may never be able to achieve home ownership, no matter how frugal they are.

 

[Handbag Lady]

I mean this in the utmost respect to all posters -

If you are paying almost $25,000 a year in rent, why not look into buying a house? Your rent payment is through the roof - your house payment would be less!

A $200,000 mortgage for 10 years at a 6% interest (we have terrible credit and was approved for 5.4%) payment is $2220 a month. After 10 years you OWN it (that's still leaving you an extra $200 a month for taxes and maintenence).

Just a thought....

Like others have said, it depends on where you live. I pay $2k in rent right now. For an apartment.

If you can FIND me a house at $200,000 where I live that is near-ish (one-hour drive) my work I'll eat my shoes.

 

[cats mom]

I don't think the PP was saying people should not have to save their money for a down payment, or that banks should just hand over cash. My take on ZachnElli's post is that it's not as easy as, "Oh, if you're paying $2400 a month in rent you should just buy a house." Obviously one has to save up for a down payment before one can buy a home. For some people, like yourselves, it can take many years but eventually you saved the cash and were able to buy. For others, who struggle just to pay their rent/bills & keep food on the table, they may never be able to achieve home ownership, no matter how frugal they are.

And there are others who do have the downpayment and the income required to buy a house, but their situation is such that buying is not the best option for them at the moment.. whether that be because of their personal situation, the area they live in, etc., etc.

I'm really surprised at all the people who are pushing the OP to buy a house when she has already said that buying does not make sense for her family right now.


.

 

[ClarabelleCowFan]

Like others have said, it depends on where you live. I pay $2k in rent right now. For an apartment.

If you can FIND me a house at $200,000 where I live that is near-ish (one-hour drive) my work I'll eat my shoes.

The real estate prices in Southern California are insane. I was on the phone with a friend of mine who is a realtor in LA today who told me he was having a hard time finding a 2 bedroom condo for less than $315k in a decent area.

I don't understand the push on this thread to BUY a home instead of rent. It is not always the best situation EVEN if you can get financing. Believe me, I would never have believed that either until this year. If you can afford to buy, can get a fixed rate mortgage and you plan to stay put in that house for at least 7 years or more then go for it but if you have to move more often than that I wouldn't do it. We stayed in this house over 3 years and are losing money.

OP - once the term "short sale" was even mentioned then I would start looking for another place to live. Good luck!

 

[cm8]

I mean this in the utmost respect to all posters -

If you are paying almost $25,000 a year in rent, why not look into buying a house? Your rent payment is through the roof - your house payment would be less!

A $200,000 mortgage for 10 years at a 6% interest (we have terrible credit and was approved for 5.4%) payment is $2220 a month. After 10 years you OWN it (that's still leaving you an extra $200 a month for taxes and maintenence).

Just a thought....

but I love your signature!

 

[jsmith]

OP now that i know more about the circumstances-i dont know where your DH works-but you can definately find something less expensive to rent-your owners are being unrealistic-Black Forest is one of the area's that have taken a hard hit-i would move. If you are willing to live on my end of town you can find something very nice in the 1500 to 1800 dollar range-not out and in privacy like you have now but still adequate-that would mean making your children change schools however.

 

[lovemygoofy]

And there are others who do have the downpayment and the income required to buy a house, but their situation is such that buying is not the best option for them at the moment.. whether that be because of their personal situation, the area they live in, etc., etc.

I'm really surprised at all the people who are pushing the OP to buy a house when she has already said that buying does not make sense for her family right now. .

This would be us. We have the money to purchase a house here and a downpayment. Heck our deposit and first month's rent is almost a downpayment in a normal housing area.

I pay $2450 a month for almost a 3000sqft house. The owner is still paying 400 OOP. We live in a great neighborhood and close to my husband's work. Knowing we'd only be here 3 years tops and NO WAY we could swing a mortage here AND live somewhere else we are choosing to pay this crazy rent.

In the end this is our best judgement because you'd be hard pressed to find a decent house in our area for less than what we pay now and not have a 500-600,000 mortgage. Good friends of ours here now pays more than $3,000 rent.

 

[thebeesknees]

And there are others who do have the downpayment and the income required to buy a house, but their situation is such that buying is not the best option for them at the moment.. whether that be because of their personal situation, the area they live in, etc., etc.
.

This, exactly. We moved from CO to MD a few years ago and could have, in theory, "afforded" to buy a house rather than rent one. We had just sold our CO home for a decent profit and had enough for a down payment. However, the housing market in that area of MD was very high - the same house that would have sold in CO for $250K was running about $550K there. We only planned to be there for 2 years, so after thinking it over and figuring out how much we would have paid a Realtor to sell it for us (if it could be sold - that was about the time the market crashed), we decided to rent instead. Lots of people told us we were crazy to pay $2,000 a month to rent when we could have the equity, but I was so glad to be able to move back to CO at short notice without worrying about trying to sell a house. We were able to buy a nice house here before the market started to recover, so I think we already have some decent equity in it. Long story short, there are lots of reasons why it might make more sense to rent vs. buy for a particular family at a particular time.

OP, I hope you and your family are able to find a place that is reasonable for your budget. We have family with rental properties in the CO Springs area, so I know what the going rate down there is, and I do think you could probably find someplace that is running less per month in rent, but it is going to be a real hassle to move. Hope it all works out for you.

 

[LaurenLC]

I mean this in the utmost respect to all posters -

If you are paying almost $25,000 a year in rent, why not look into buying a house? Your rent payment is through the roof - your house payment would be less!

A $200,000 mortgage for 10 years at a 6% interest (we have terrible credit and was approved for 5.4%) payment is $2220 a month. After 10 years you OWN it (that's still leaving you an extra $200 a month for taxes and maintenence).

Just a thought....

It depends on where you live..... Prior to buying my husband and I were paying $2500 a month for a 2 bed/2 bath 'condo' with a garage parking space. I'm not sure where you live, but where I live $200,000 will get you a 1-2 bedroom condo in an ‘up and coming’ area.

 

[Irin997]

OP I would seriously consider moving. Check out craigslist in your area:

http://cosprings.craigslist.org

FYI I just did a quick search for "Black Forest" and there is only one listing for rentals ABOVE $2400 a month. The rest are extremely reasonable (compared to what you're paying ). Majority seem to be in the $1200-$1700 range = a huge savings!

Good luck with whatever you decide!

 

[disneyofcourse]

Remember they have expenses to and sometimes they have to charge more to keep up with it. Just like landscapers, dog groomers, hair stylists who raise fee's every year or two to keep up with costs.

 

[heatherleigh]

Wanted to give an update with the good news. We took a chance, and looked up the owner and called them directly. I wasn't sure how we'd be received since it could be perceived as overstepping boundaries. The reason we decided to call was because the property management company wasn't giving us any answers, and they ultimately advised us to start looking for another place.

The owner said they were not looking at selling at this time because of the market. She said they're not in any trouble, and they wanted us to stay as tenants. She said she knew we took good care of it because of the photos and inspection report. She was very upset when she heard the co. told us to move on, because she and her husband want us to stay. She said she wasn't having her phone calls go through to the company and they were giving her mixed messages regarding our intentions as well.

Bottom line, we were able to re-up the lease for another year and our rent only went up $100! My husband told her we would be willing to go up another $300 (before she said anything regarding the price) so I think it worked out well.

 

[arminnie]

The rent should be set by the owner, not the PM company. Have you talked to the owner? It is the owner's decision, not the PM company's decision.

Yes, it is the owner's decision - but many owners do not want any contact with the tenants.

I used a property management company in the past with some rental properties. One of the things I was paying for was NOT to have any contact with the tenants.

One time I rented out my home after a transfer, and when I moved back I stayed temporarily with my friend across the street for 2-3 months while my new home was being finished. I happily waved to my tenants every morning. They never knew I was their landlord. We had a big dispute which I would not back down on. My property manager had to handle that confrontation. That's what I was paying for.

It all depends on the market. For years I would have a small increase (maybe $25) each year, but when the market tanked I had to reduce rents by hundreds of dollars.

 

[cats mom]

For all the folks saying $2,400 a month is crazy, not only do you have to put it in the context of location, but of income.

For someone bringing home $5,000 monthly, it is crazy
For someone bringing home $9,600 monthly, it's 25% of income, so very reasonable
For someone bringing home $15,000 or more monthly, it's no big deal at all


I'm gald it worked out to your satisfaction OP. Not needing to pack up and move is certainly worth something in my book.

I have to ask though... in your original post you were upset about them raising your rent $50 per month, but now you're happy about a $100 per month increase? Has the rental market tightened where you are?

We pay $2400 per month, and I refuse to pay another dime.

My husband called the co. and told them that he wouldn't pay an extra dollar per month. They said they'd probably just put the rent up another $50 per month.

Bottom line, we were able to re-up the lease for another year and our rent only went up $100! My husband told her we would be willing to go up another $300 (before she said anything regarding the price) so I think it worked out well.